Coordinating Minister Airlangga: IKN Development Becomes A Stimulus For Equitable National Economic Growth

Coordinating Minister for Economic Affairs, Airlangga Hartarto. (Photo: Doc. Antara)

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto conveyed that the construction of the National Capital of the Archipelago in Kalimantan was a stimulus for equitable distribution of national economic growth as mandated in the 2020-2024 RPJMN.

"IKN development has been directed outside Java Island with a more balanced location spatially and economically, as a stimulus for equitable distribution of national economic growth," he said in a written statement, quoted from Antara, Sunday, June 19.

The Central Statistics Agency (2021-2022) noted that around 57 percent of Indonesia's population is concentrated in Java and its contribution to Indonesia's GDP is 57.78 percent in the first quarter of 2022.

In the same period, the economy of Kalimantan Island contributed 8.29 percent to GDP, Sumatra 21.96 percent, Sulawesi 6.73 percent, Bali and Nusa Tenggara 2.66 percent and Maluku and Papua 2.58 percent.

In the long term, the existence of IKN is expected to act as an economic super hub and national economic value chain.

The economic super hub development will be developed in six strategic, resilient, and innovative economic clusters, including the clean technology industry cluster; integrated pharmacy; sustainable agriculture industry; ecotourism; chemical and chemical derivative products; and low carbon energy.

In addition, there are also two supporting clusters, namely 21st century education and smart cities and industrial centers 4.0.

"Relocating IKN to Kalimantan Island and making it an economic super hub is one strategy to shift the share of economic growth and development from the west to the east," he said.

Furthermore, Airlangga said that collaboration and participation of every relevant stakeholder was the main key to making the IKN development run smoothly.

"The presence of various elements that contribute positively, including from universities, is expected to accelerate the realization of investment in the development of the Nusantara IKN and in line with the development strategy that has been planned by the Government," he explained.

In addition, IKN development certainly requires a supply of quality human resources, especially from residents around IKN. Therefore, increasing the national education budget is one way for the government to improve the quality of human resources with an allocation of Rp542.8 trillion in education funds in 2022.

"The centers of excellence needed at IKN, for example regarding green cities, digital transformation, and the development of hydropower technology in Kalimantan, which downstream can generate hydrogen-based industries, can be encouraged from the study center of the University of Balikpapan. I also want a new unicorn startup to emerge one day." from this university student initiative," he said.